New York · research and development · NY-RD-001
Research Credits / Excelsior research and development component
Publication revised September 24, 2026. Sourcebook page 205.
Credit amount / calculation
Program-specific percentage of qualifying research and development expenditures; certification may be required.
Business fit and eligible activity
Research-intensive wood-product projects may qualify under current state research mechanisms. Qualified research activity. Ordinary production, routine quality control and an equipment purchase alone do not qualify.
Eligibility and practical use
A wood-products company can miss this credit by assuming that "research" means white coats and laboratories. In practice, qualifying work can arise in process engineering, product development, automation, drying, recovery, and software. A logging company has a narrower path, but equipment-control, software, or process-development work can sometimes qualify if it satisfies the same technical tests. This program also has an advance procedural step, so the technical work should not begin on the assumption that a later application will cure the timing issue.
Illustrative business benefit
Use-of-credit illustration, not an estimated award: assume the agency or completed tax form establishes a $1,000 credit for the qualifying activity described above. If sufficient eligible tax is due, a $1,000 credit available for current use reduces that tax by $1,000. If annual limits allow only $600, that is this year's saving; the other $400 survives only if the carryforward or transfer rules permit. Obtain the actual program calculation before estimating a project benefit.
Timing / first action
Seek approval before signing a purchase order, contract, lease or other binding commitment. Confirm the exact point at which a purchase order, contract, lease, or other binding commitment would make the project ineligible.
Official sources
- tax.ny.gov — Excelsior jobs program tax credit (tax.ny.gov)
Related programs
Brownfield Redevelopment Tax Credit
Multiple credit components based on qualified cleanup
Certified brownfield projects can receive substantial site-preparation and tangible- property credits.
Employment Incentive Credit
Additional credit tied to investment tax credit property
Businesses that qualify for investment tax credit and increase employment training; where the program also requires investment, satisfy both tests.
Excelsior Jobs Program Credits
Multiple refundable components under an Empire State
Large/strategic manufacturing expansions can receive refundable credits for jobs, investment and research and development.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method
A sawmill, secondary manufacturer or biomass business can qualify when it performs genuine technological experimentation to improve a product or process.
Rehabilitation Credit (Internal Revenue Code §47)
Generally
A forest-products company rehabilitating a certified historic mill or industrial building for income-producing use may qualify.